A company that manufactures bicycles has a fixed cost of $80,000. It costs $100 to produce each bicycle. The total cost for the company is the sum of its fixed cost and variable cists..

Question

Write the total cost, C, as a function of the number of bicycles produced, x. Then, find and interpret C(90)

Answer 1

C(x) = 80000 + 100x where x is the number of bicycles produced.

C(90) = 80000 + 100*90 = 80000 + 9000 = 89000

It costs $89k to produce 90 bicycles